The Solution
So far we have covered off two of the critical elements that you need to include in your proposal to an investor
- opportunity as it relates to an investor, and broadly what the market conditions are that it relates to
- the problem you see as being worthy of a commercial solution
The next critical element is expressing what you have got in particular that will solve the problem as you have expressed - the solution
Essentially you need to articulate what you have that will logically solve the problem.
For example:
You have a license or you have developed a patented technology that serves to solve the problem at hand. There needs to be evidence of strength of the solution in so far as the first thing the investor will look for is some degree of exclusivity, uniqueness, or strategic advantage over what might already exist in the market (we will come to the competitive strengths in another critical ingredient) but for now it is simply a statement. The strength in your “story” will build as we progress through the proposal.
Note: when disclosing you have patented technology, there is no need to elaborate to the point of disclosing information that you are uncomfortable in doing. A detailed disclosure of Intellectual Property can come during due diligence after a term sheet has been signed. But suffice to say that there needs to be enough appreciation of what the solution purports to solve that the investor can move to the next stage in the proposal.
Look out for our next critical ingredient: The Management Team – quite possibly the most important critical ingredient for investors to get their head around.
